The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Boise Cascade (BCC)
Consensus Price Target: $92 (28.9% implied return)
Formed through the merger of two lumber companies, Boise Cascade Company (NYSE: BCC) manufactures and distributes wood products and other building materials.
Why Do We Think BCC Will Underperform?
- Annual sales declines of 4.2% for the past two years show its products and services struggled to connect with the market during this cycle
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.5 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
Boise Cascade’s stock price of $71.35 implies a valuation ratio of 17.9x forward P/E. Check out our free in-depth research report to learn more about why BCC doesn’t pass our bar.
Weatherford (WFRD)
Consensus Price Target: $120.67 (43.8% implied return)
Operating in roughly 75 countries with over 300 facilities worldwide, Weatherford (NASDAQ: WFRD) provides equipment and services for drilling, completing, and maintaining oil and gas wells.
Why Does WFRD Give Us Pause?
- Sales tumbled by 5.1% annually over the last ten years, showing market trends are working against it during this cycle
- Gross margin of 31.7% reflects its high production costs and unfavorable asset base
At $83.93 per share, Weatherford trades at 14.2x forward P/E. Dive into our free research report to see why there are better opportunities than WFRD.
One Stock to Buy:
Mastercard (MA)
Consensus Price Target: $644.89 (23.4% implied return)
Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE: MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.
Why Should You Buy MA?
- Market share has increased this cycle as its 17% annual revenue growth over the last five years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23.1% exceeded its revenue gains over the last five years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Mastercard is trading at $522.80 per share, or 26.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
